A Guide to Anti-Money Laundering for Crypto Firms
Oliver Furniss, Chief Product Officer
To keep our customers up to date with product updates, we’ll be posting a regular update every quarter or more frequently for specific bigger updates. Here’s an overview of the improvements we’ve released recently.
If you have any questions on these updates, speak to your customer success manager or email us at [email protected], and we’ll get back to you.
Customer screening and ongoing monitoring
We’ve made several enhancements to client screening and monitoring features to give customers more control.
Set alert frequency per AML type
Reduce monitor notification rates by up to 50% by consolidating hits and processing them in one swift action. For example, opt to receive daily sanctions alerts and adverse media on the first Monday of the month.
Edit search profiles
Search profiles tailor your screening program to your firm’s risk-based approach. By reducing the scope of a monitored case, customers can screen against fewer sources and optimize their alert rates. To access this update, call the API with the search reference of the case to be edited and the ID of the search profile that should be assigned to the case. Find more information here.
Sort search results by risk type and match quality
We have updated our match-scoring logic to focus on risk type and match quality. Search results are now sorted by risk type and match quality, with the highest-risk and stronger matches first. This will enable customers to prioritize their time and resources better while mitigating the chances of missing a high-risk profile.
Only show source-specific information in search results
Profiles in search results will now only include listings from data sources that were included in the scope of a search. For example, search a name against sanctions and PEPs only, and information from warnings, fitness probity or adverse media will no longer appear.
Filter information based on year of birth and country filters
Profiles in search results will now only include listings with year of birth and country information that match search filters. Previously, there were circumstances where information was displayed that could be discounted based on year of birth and country filters.
Easily see which name in our data caused a match – in a script you can read
The name or ‘Also Known As’ name (AKA) that caused the match will always be shown with the search term at the top of each profile card in search results. For matching names in all non-Latin scripts, customers will now see a Latin script transliteration in brackets after the name on the profile card.
Previously matching names were often displayed only in their original script. When an AKA caused the match, customers often had to click into the profile card to view the list of AKAs to understand the basis for the match.
Searching person names in Chinese will see fewer false positives
Person names written in Chinese script will now match directly in Chinese script wherever possible. As a result of this change, results will no longer be returned that should be discounted based on a non-matching Chinese script name.
Single sign-on is now available
We can now offer single sign-on capabilities for customers using Azure AD, Okta, or Google as their identity provider, as well as direct SAML or OpenID Connect integrations. Single sign-on removes the need for users to have a separate username and password combination to access the ComplyAdvantage customer screening and ongoing monitoring, improving security and the user experience.
Self-serve search report downloads are now live
Customers can now get self-serve access to search reports and ingest their analytical tool of choice. Pivot tables are designed to help cover the most common use cases. The greater visibility this update brings is designed to help optimize the performance of our customers’ compliance teams.
Case management improvements
Customers will experience improved performance when using multiple filters in the case management tab.
Adverse media article snippet ID and status
With this improvement, customers can identify a particular article within an entity to reference it as the basis for changing the status of a case. This is required for audit purposes. Users will also be able to select the status of an article (PM/FP/TP) to identify which articles have already been processed quickly.
Know Your Business product launches in Beta
Our new Know Your Business (KYB) tool allows customers to meet their KYB process needs within the customer screening and ongoing monitoring platform. KYB gives users a fuller understanding of the risks involved in working with a company by analyzing not just the target entity but all related entities too. A limited number of Beta places are available – to join the waitlist, please contact your customer success manager.
Transaction Monitoring and Screening
No-code rules builder puts customers in control
Change rules to swiftly adapt to changes in operations and regulations without relying on engineering resources. Users can view, edit, test, and approve their own rules to gain increased control over rule management. The no-code interface helps customers to:
- Identify where improved rule coverage is needed
- Modify rules to reflect changing business needs or improve performance
- Support internal or external audits, as all rule changes carry a full audit trail.
More information on this change is available here.
Explore the new pre-built rules library
An extensive rule library of AML/ CFT industry risk typologies is now available to help customers start quickly using pre-built rules. Rules are categorized for ease of use and aligned to specific red-flag scenarios. The rules library will empower users to design industry-specific rule sets tailored to their business’ risk-based approach with out-of-the-box configuration options. Rules can be easily customized to adapt to business needs.
Set rules requiring specific timeframes
Rule configurations that include transactions occurring within a specific time period are now supported. Scenarios for this rule may include transactions conducted out-of-hours, on weekends, or in a given month or quarter. This increased flexibility allows users to detect risks where a specific rule scenario is required, creating only the alerts they deem suspicious and reducing false positives.
Configure custom alert messages
Customers can now easily create and configure descriptions of alerts and embed values directly from transactions. This helps analysts understand and relate alerts to transactions more quickly when compared with generic alert descriptors. The new alert message configurator also comes with a preview functionality so users can test changes before activating them.
Efficiently manage alerts with entity-based workflow updates
Clients are now able to remediate alerts efficiently and effectively by entity type. This can now be done through bulk assigning, commenting on, and exporting alerts. Filtering and searching alerts also support the sorting and prioritization process.
Data fields now show data type
When working on rules within the rule builder, users will now see a data type label next to each data field to help identify whether its format (e.g., numeric or text) makes the rule-building experience easier. This will help users to select the right data field and apply appropriate conditions.
Three new dashboards launched
Following the release of our rule performance dashboard that allows customers to see the efficiency and effectiveness of their rules, we have released three additional dashboards: team performance, current status, and overall executive summary. These new visualizations allow users to diagnose and improve operational performance bottlenecks – both retrospectively and in real-time.
BIC/SWIFT payment screening is now available
To improve the accuracy of payment screening while minimizing false positives, customers can now screen a bank’s SWIFT/Bank Identification Code (BIC) instead of its name. More details here.
The ComplyAdvantage integration with Elliptic provides our customers with blockchain data and analysis. Elliptic provides blockchain analytics for cryptoasset compliance. Utilizing Elliptic’s rich dataset to raise blockchain-specific alerts within the ComplyAdvantage platform, customers can consolidate their risk management process, dive deep into blockchain analysis, and reduce the time and money spent on system integrations.
Rules related to string manipulation
Rules will be introduced to extract specific details from string fields included in transaction data, such as sender or beneficiary names and reference text.
Enhanced rule tuning
Predict the hit rate of rules by running them on historical data before tuning the values in line with expected alert volumes. Users will be able to validate and optimize their rules and see a reduction in false positives.
Payment transaction screening against PEP lists
Customers will have the option to screen payment transactions against Politically Exposed Person lists.
AI prioritization add-on
With AI-powered alert prioritization, customers can now say goodbye to alert fatigue. A model trained on customer-specific data and analyst feedback will identify patterns in alerts and assign a high, medium, low, lowest risk score. Prioritized alert management also ensures analysts can manage backlogs efficiently.
Customer Risk Scoring
Automated customer risk assessment
Customers can now request early access to a feature that helps them to sign up the right customers quickly and cost-effectively. Automated risk scoring calculates a risk score based on a customer’s risk policy as part of the onboarding process. Firms can use this score to approve, review, or automatically decline customers. This feature works with the ComplyAdvantage screening and transaction monitoring products, helping to reduce false positive alerts.
Customers interested in receiving free, early access should contact their customer success manager.
Originally published September 23, 2022, updated September 27, 2022
Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.
Copyright © 2022 IVXS UK Limited (trading as ComplyAdvantage).